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Article
Publication date: 20 February 2017

Constanza Bianchi, Charmaine Glavas and Shane Mathews

Small- and medium-sized enterprises (SMEs) from emerging markets in Latin America are increasingly engaging in internationalization. Nevertheless, there is limited research into…

2903

Abstract

Purpose

Small- and medium-sized enterprises (SMEs) from emerging markets in Latin America are increasingly engaging in internationalization. Nevertheless, there is limited research into how these firms achieve international performance. The purpose of this paper is to examine managerial and technology-related capabilities and their impact on international performance of SMEs.

Design/methodology/approach

Drawing on data from 233 Chilean SMEs, a model is developed and tested using structural equation modeling. Specifically, the model considers the role of international entrepreneurial orientation and internet technology capabilities on SME international performance, taking into account the mediating effect of international entrepreneurial opportunity recognition and technology-related international networks.

Findings

Results show that international entrepreneurial opportunity recognition and international networks mediate the relationship between international entrepreneurial orientation and internet technology capabilities on SME international performance.

Research limitations/implications

The context for the study is Chile. However, this is an important emerging market in Latin America with a strong focus on SME internationalization. The research design is cross-sectional and so does not allow for any causal claims to be made.

Originality/value

This research contributes to the relatively scant but increasing number of empirical studies which investigate the link between internationalization strategy and SME performance in emerging market contexts.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 18 August 2020

Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh

The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a…

Abstract

Purpose

The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a pivotal strategy to achieve success. Drawing on the entrepreneurship literature and opportunity perspective, this study aims to investigate the role of international entrepreneurial capability in enhancing the international opportunity recognition (IOR) process and the performance of export manufacturing firms.

Design/methodology/approach

Structural equation modelling has been used to test the hypothesised relationship on 388 export manufacturing entrepreneurial firms operating in the apparel industry of Bangladesh.

Findings

The results signify that three international entrepreneurial capabilities, namely, international networking, learning and marketing capability, positively enhance the IOR process of export manufacturing firms. The IOR process positively mediates the relationships between these international entrepreneurial capabilities and firm performance.

Originality/value

Merely having the international entrepreneurial capability is not sufficient to escalate the firm performance. It must be amplified by various strategic actions such as the IOR process. Entrepreneurs need to capitalise on the international entrepreneurial capability to leverage the IOR process and generate non-financial performance success. Entrepreneurial firms that focus more on stimulating non-financial performance can secure better financial performance.

Article
Publication date: 21 April 2020

Anisur R. Faroque, Md Imtiaz Mostafiz, Mohammad Omar Faruq and Mohammad Fuad Bin Bashar

The study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale…

Abstract

Purpose

The study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale entrepreneurial capabilities have been adopted to provide more profound insights into the literature on early internationalisation. Since little is known about the antecedents of export market orientation, the performance outcome of this is ambiguous. This study aims to enhance knowledge in this pressing research area.

Design/methodology/approach

The sample of this study consists of data (354 firms) from INVs operating in the apparel industry of an emerging economy, namely, Bangladesh. Structural equation modelling has been used to investigate the hypothesised relationships.

Findings

For the Deshpandé and Farley (1999) scale, the effect of general entrepreneurial capability on intelligence dissemination and responsiveness is positively significant. Similarly, the effects of international entrepreneurial capability on customer orientation, intelligence generation, dissemination and responsiveness are positively significant. However, general entrepreneurial capability has non-significant effects on customer orientation and intelligence generation. The results also showed that export market orientation positively mediates the relationship between international entrepreneurial capability and firm performance. For the Morris and Paul (1987) scale, the hypothesised relationships between capabilities and market orientation are positively significant and, therefore, support the mediating relationships for both general entrepreneurial capability and international entrepreneurial capability.

Originality/value

Merely having capabilities without acknowledging the firm's strategic orientations is not sufficient to secure superior performance. The authors urge entrepreneurs to capitalise on their entrepreneurial capabilities to leverage organisation-wide export-market-oriented behaviour to achieve superior international performance in emerging economies.

Details

International Journal of Emerging Markets, vol. 16 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 4 June 2018

Byoungho Jin and Hyeon Jeong Cho

The purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to…

2832

Abstract

Purpose

The purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to export performance by incorporating two antecedents: one from the internal environment (international entrepreneurial orientation) and another from the external environment (domestic market competition).

Design/methodology/approach

A proposed framework built on resource-based view and contingency theory was tested using partial least squares with data collected from 470 Korean SMEs.

Findings

International entrepreneurial orientation and domestic market competition both prompted SMEs to develop their technological and marketing capabilities, leading to enhanced performance in international markets. Full mediating effects of technological and marketing capabilities were discovered between international entrepreneurial orientation and export performance.

Practical implications

Given the direct effect of organizational capabilities on export performance, SMEs should facilitate the spirit of international entrepreneurial orientation and heightened managerial awareness of domestic market competition to efficiently cultivate organizational capabilities.

Originality/value

Unique findings indicate that SME capabilities can be optimally cultivated under the coexistence of an internal impetus (i.e. international entrepreneurial orientation) and a harsh external environment (i.e. domestic competition), demonstrating the significance of context in developing organizational capabilities.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 June 2017

Sheng Huang, Guangyu Ye, Jinbo Zhou and Tiantian Jin

This paper aims to reveal the influencing mechanism of the interaction between institutional environments in the home and host country on the accelerated internationalization of…

Abstract

Purpose

This paper aims to reveal the influencing mechanism of the interaction between institutional environments in the home and host country on the accelerated internationalization of entrepreneurial enterprises from emerging economies (EE). The authors want to open the black box of home-country institutional environments’ moderating mechanism on the relationship between host-country institutional environments and accelerated internationalization.

Design/methodology/approach

The authors chose a massive interview method and case study method to answer this question. According to our standards, the authors chose four high-tech companies in Guangdong and Guangxi provinces as case study samples. During investigation in the four case companies, the authors collected print data of 150 pages and electric data of 3 pages. Then, the authors excavated concepts in data through open coding, axial coding and select-type coding and identified concepts’ dimensions and connections between them.

Findings

Well-developed home-country institutions can reduce the inhibitory effect of under-developed host-country institutions on the accelerated internationalization of entrepreneurial enterprises from emerging economies. Under-developed institutional environments in the home country are beneficial for entrepreneurial enterprises from EE to develop the institutional capability for entrepreneurial enterprises with stronger institutional capability from emerging economies. The inhibitory effect of under-developed institutional environments in the host country on their accelerated internationalization is weaker. The positive moderating role played by institutional voids in the home country on the relationship between institutional voids in the host country and the accelerated internationalization are mediated by the institutional capability of entrepreneurial enterprises from emerging economies.

Research limitations/implications

The authors just refined the definition of institutional capability and divided its dimensions. Issues such as operationalization of institutional capability and the development of measurement scale are also worthy for future quantitative research. Considering the inherent defect of case study and that these four case companies are from Chinese high-tech industry, the external validity our research may be limited. The theoretical model that was constructed generally captured the relationships between dual institutional environments, institutional capability and EE entrepreneurial firms’ accelerated internationalization decision. Future studies may use a large-scale sample to verify the all propositions the authors introduced to draw more steady and reliable empirical study results.

Practical implications

The conclusions have significant implications for governments in EE to construct friendly institutional environments for international entrepreneurship and for entrepreneurial firms to implement internationalization strategies.

Social implications

Policy makers should establish well-developed normative and cognitive institutional environment by cultivating global-orientated and open national culture and organizing experience exchange conference, thereby speeding up the implementation of internationalization strategies and further improving international competitiveness for a country.

Originality/value

First, the authors defined institutional capability as firms’ ability of establishing relationships with institution actors, adapting to institutional contexts, changing existing institutions or creating new ones to gain potential interests and suggested that it consists of three dimensions. Second, institutional voids in the home country positively moderate the relationship between under-developed institutional environments in the host country and the accelerated internationalization of entrepreneurial firms from EE. At last, institutional capability of firms negatively moderates the relationship between under-developed institutional environments in the host country and the accelerated internationalization of entrepreneurial firms from EE.

Article
Publication date: 3 November 2022

Moza Rashed AlShehhi, Jacob Poopada Cherian, Sherine Farouk and Moza Al Nahyan

This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of…

Abstract

Purpose

This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of small and medium-sized enterprises (SMEs) in the context of the United Arab Emirates (UAE).

Design/methodology/approach

Adopting a quantitative approach, the researchers designed a questionnaire based on an extensive literature review and used structural equation modeling to ascertain the mediating role of international entrepreneurial orientation in the relationship between influential dynamic capabilities and SMEs' internationalization success.

Findings

The findings of this study indicate that international entrepreneurship orientation mediates the relationship between dynamic capabilities and internationalization success, as the indirect impact value is greater than the direct effect value for the relationship. Because the existence of the mediator in the model has no significant impact on the model's direct effects, full mediation is the most appropriate mediation type.

Research limitations/implications

This study has some limitations. One of the major limitations of this study relates to the limited finances of the incumbent, as the questionnaires were delivered to the respondents via email, but the incumbent had to follow up with phone calls and reminders. Second, this study mainly relied upon primary data and analysis based on the use of qualitative techniques; in future, researchers can incorporate qualitative aspects using interviews and other qualitative analysis tools and techniques. Third, limitation relates to sample size, as the sample size of research was above 500 but was limited to just UAE. Future researchers can conduct a cross-sectional analysis to determine the mediating role of different factors for the promotion of internationalization.

Practical implications

This study highlights the fundamental factors affecting the internationalization of SMEs in the UAE context, which has rarely been discussed. This study broadens the scope of internationalization by discussing its impact on SMEs' financial and non-financial performance.

Social implications

This study will contribute to the advancement of current information about the elements that impact the internationalization of SMEs and develop a new framework for analyzing SMEs' internationalization in the UAE.

Originality/value

This study contributes to the literature by developing and testing a framework based on a comprehensive literature review to include different factors and their constructs that impact the potential internationalization of SMEs in developing economies. This study identifies and addresses a research gap regarding the relationship between internationalization and company performance among UAE SMEs.

Details

Review of International Business and Strategy, vol. 33 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Book part
Publication date: 14 December 2017

Monika Petraite and Vytaute Dlugoborskyte

The chapter is structured as follows: in the first part, we provide the framework for the analysis of the formation of the born global firm, whereas the entrepreneurial

Abstract

The chapter is structured as follows: in the first part, we provide the framework for the analysis of the formation of the born global firm, whereas the entrepreneurial, strategic, and network-based factors are conceptually linked and leading toward a global champion. The analytical model proposes the analysis of strategic choices as defining factors at the level of entrepreneurial behavior, firm strategy, and network. The case study methodology is provided in the second part of the chapter. The third part provides the empirical linkages of entrepreneurial, strategy based, and network factors’ manifestations and underpinnings in R&D intensive entrepreneurial born global firms. These are followed by discussion and conclusions enclosing empirically grounded framework that explains the emergence of R&D intensive entrepreneurial-hidden champions from the perspective of entrepreneurial firm and network theories.

Details

Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms
Type: Book
ISBN: 978-1-78714-502-3

Keywords

Article
Publication date: 4 April 2022

Sudip K. Tiwari and Tor Korneliussen

This research explores the role of entrepreneurs' dynamic capabilities in small artisanal firms' entrepreneurial internationalisation.

Abstract

Purpose

This research explores the role of entrepreneurs' dynamic capabilities in small artisanal firms' entrepreneurial internationalisation.

Design/methodology/approach

The paper applies an inductive, exploratory multiple case study approach to the empirical context of the Nepalese artisanal sector. Primary data were collected through interviews and observations and triangulated by secondary data, such as firms' websites and social media profiles.

Findings

The findings suggest that entrepreneurs' network utilisation, network-building and marketing capabilities are crucial to enabling small artisanal firms' entrepreneurial internationalisation. Entrepreneurs' network-retaining, market-oriented learning and innovative capabilities become more important as firms mature. Accordingly, the paper theorises that artisan entrepreneurs in a developing economy should build and apply different dynamic capabilities based on firms' internationalisation phase.

Originality/value

The fine-grained discussion of the findings and the six propositions from this study advance the current understanding of dynamic capabilities, entrepreneurial internationalisation and artisan entrepreneurship literature.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 6 March 2023

Selene Pennetta, Francesco Anglani and Shane Mathews

This study aims to define, classify and interconnect the wide range of known entrepreneurial abilities with terms such as skills, capabilities and competencies, which have been…

Abstract

Purpose

This study aims to define, classify and interconnect the wide range of known entrepreneurial abilities with terms such as skills, capabilities and competencies, which have been used inconsistently within the entrepreneurial field.

Design/methodology/approach

This investigation is based on a systematic literature review and strengthened by a meta-analysis equipped with a bibliometric study to assist the generation of outcomes with a quantitative investigation.

Findings

This study proposes an evolving entrepreneurial ability model which interconnects genetic and acquired skill types, capabilities and competencies and is equipped with an Entrepreneurial Skills Map essential to operate in the 21st century.

Research limitations/implications

The proposed model is specific to the entrepreneurial field.

Practical implications

This study supports universities and government agencies for the development of educational programs to prepare current and future entrepreneurs to match the changes in the new environment that has emerged with the COVID-19 pandemic.

Originality/value

This research contributes to the entrepreneurship research domain by shedding light on the inconsistent use of non-standardised terminologies and providing an entrepreneurial model and updated skills map to guide scholars to frame research in the post-COVID era with more clarity.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 11 June 2018

Mohammad Falahat, Gary Knight and Ilan Alon

The purpose of this paper is to examine the impact of entrepreneurial orientation and networking capabilities of born global firms in an emerging market on marketing strategy and…

3142

Abstract

Purpose

The purpose of this paper is to examine the impact of entrepreneurial orientation and networking capabilities of born global firms in an emerging market on marketing strategy and foreign market performance.

Design/methodology/approach

Structural equation modeling was used to analyze data from 1,001 internationalized firms in an emerging market and to test seven hypotheses regarding the development of marketing strategy and foreign market performance.

Findings

Marketing strategy was found to mediate the relationship between entrepreneurial orientation and networking capability and foreign market performance, while foreign market performance is affected by entrepreneurial orientation and marketing strategy.

Research limitations/implications

Research on emerging market multinationals can be merged with that of born globals to augment our understanding of how early internationalizers from emerging markets perform in foreign markets.

Originality/value

This study is among the few focusing on born globals in emerging markets, which face the difficulties of newness and limited resources, as well as characteristics of emerging markets, such as institutional voids.

Details

International Marketing Review, vol. 35 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

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